U.S. Customs and Border Protection (CBP) has initiated enhanced enforcement procedures to verify the accuracy of Importer of Record (IOR) data submitted on CBP Form 5106. Importers and customs brokers must ensure all active records are complete, accurate, and up to date by September 18 to prevent operational disruption and significant penalties.
This enforcement surge follows the June 3 executive order on customs enforcement, which mandated the Department of Homeland Security (DHS) to verify that active importers comply fully with all applicable federal regulations.
Key Requirements for Importers of Record
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Physical Address Verification: The address listed must be the importer’s actual physical place of business. P.O. boxes and shared third-party addresses are not accepted.
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Direct Importer Contact Details: Phone numbers, email addresses, and contact details must belong directly to the importer—not to the customs broker, freight forwarder, or an unrelated third party.
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Independent Verification: The party certifying Form 5106 is legally obligated to verify the accuracy of all submitted data before transmission.
Risks of Non-Compliance and Penalties
Because IOR details establish the legal identity responsible for duties, taxes, and trade compliance:
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Immediate Voiding of IOR Numbers: Inaccurate, false, or misleading data will prompt CBP to immediately void the active IOR number and issue a formal Notice of Action (copied to the most recent filing broker).
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Fines and Legal Liability: Material inaccuracies, intentional misstatements, or fraudulent filings carry severe financial penalties, civil liability, or potential criminal charges.
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Broker Sanctions: Customs brokers transmitting unverified or known false information face separate broker penalties. Brokers must also maintain an active, valid Power of Attorney (POA) authorising them to file on behalf of the importer.
Action Steps
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Review Active CBP Form 5106 Filings: Verify that your legal entity name, EIN/SSN, physical business address, and primary contact details match CBP records exactly.
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Ensure Valid POA Coverage: Confirm your customs broker holds an up-to-date, fully executed Power of Attorney.
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Re-establishing a Voided Number: If an IOR number has been voided, CBP instructions outline the formal re-establishment process. Questions can be directed to CBP at [email protected].
For assistance in auditing your Form 5106 details or confirming your compliance status, reach out to the trade advisory team at Sobel.
